Metered Access

Crain's Detroit Business is a metered site. Print and digital subscribers have unlimited access to stories, but registered users are limited to eight stories every 30 days. After viewing three metered stories, you'll be asked to register or log in. After eight more stories in 30 days, you'll be asked to subscribe.

Charter One parent files for IPO of common stock

Rhode Island-based Citizens Financial Group Inc. announced after the close of markets Monday that it has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering of its common stock, which is owned by its parent company, the Royal Bank of Scotland Group plc.

The number of shares to be offered and the price range for the proposed offering have not yet been determined.

Citizens Financial Group is the 13th largest retail bank holding company in the U.S., with $122.2 billion of assets. It operates under the Charter One brand in Michigan.

Citizens has about 1,370 branches in 12 states in New England, the Midwest and the Mid-Atlantic.

More than a year ago, RBS, under pressure from the British government to sell overseas assets and repay a bailout that left the government owning 81 percent of the bank, announced it would try to do an IPO of its U.S. operations by the end of this year.

In January, Citizens announced that it had sold its 94 Charter One branches, $5.3 billion in assets and small-business operations in the Chicago area to Minneapolis-based U.S. Bancorp for about $315 million, in a deal that is expected to close by the end of the second quarter.

The Michigan operation has continued to lose assets and market share and has been a revolving door for the market president in its Southfield headquarters.

In 2006, Charter One ranked No. 7 in deposit market share in Michigan, according to the Federal Deposit Insurance Corp., with 122 branches, $5.69 billion in deposits and a share of 3.73 percent.

As of last June 30, it ranked 10th, with 103 branches, $4.74 billion in deposits and a market share of 2.81 percent, a decline of about 25 percent.

The Michigan operation has had three presidents in less than two years and currently operates without one.

By far the biggest name of the three departed top execs is Sandy Pierce, a powerhouse in the community who made the surprise announcement in May 2012 that she would step down as president and CEO of Michigan operations on June 30 of that year.

She was replaced by Scott Swanson, who left Charter One in January 2013 to become president of the Illinois region of Pittsburgh-based PNC Bank.

He was replaced by Ken Marblestone, who left the bank in November 2013 to pursue “other interests.” Marblestone has been president of both Michigan and Ohio operations, and he was replaced in Ohio.

Morgan Stanley & Co. LLC and Goldman, Sachs & Co. are acting as joint global coordinators, and J.P. Morgan Securities LLC is acting as joint bookrunner for the public offering.